For Immediate Release

March 26, 2002
Contact: Mike Fergus
Phone: (425) 227-1203

RENTON, WA — The FAA has announced proposed civil penalties against the Boeing Commercial Airplane Group. Four penalties are proposed to be assessed for violating FAA regulations, each alleging failure to maintain Boeing's quality control system in accordance with the data and procedures approved in its production certificate. Specifically,

..a penalty of $78,250 for the alleged acceptance of vertical stabilizer components from a supplier that were missing a required corrosion-inhibiting compound installed on 33 aircraft, from December 1997 through April 2000.

..a penalty of $96,800 for the alleged failure of Boeing to install inclinometers in the main wheel wells of 17 aircraft that had documentation indicating acceptance of proper inclinometer installation, prior to April 1998.

..a penalty in the amount of $90,200 for alleged improper installation of wiring bundles resulting in 'chaffing' of the bundles against oxygen generators on four different aircraft. The problem was discovered in an FAA evaluation in February 1998.

..a penalty of $79,200 for alleged installation of unapproved and defective thrust washers in fuel pumps for 72 Boeing 747 model aircraft. All Crane Part Fuel Pumps delivered to Boeing for Model 747 aircraft from August 7, 1996 through October 1998, were suspected of containing the nonconforming Thrust Washers

Since discovery of these allegations, Boeing has worked with the FAA to identify immediate and remedial corrective actions. After the identification of additional issues during February 1999, Boeing collaborated with the FAA in conducting additional root cause investigations, and identified areas of broad systemic improvements.

Areas identified for improvements include clarifying and simplifying procedures and process, conducting additional training of personnel; emphasizing an attitude of internal compliance to those new processes and procedures and implementing metrics to gauge the health of the new processes and procedures.

Boeing has been provided with an opportunity to respond to each case. Any further actions will be based upon Boeing Commercial Airplane Group responses.

This announcement of the proposed civil penalty is made in accordance with the FAA's policy of releasing information to the public on enforcement actions in cases involving penalties of $50,000 or more.